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Tax on a bonus in Ontario isn’t a special rate. The bonus is added to your year’s pay and taxed at the top of it. On a $60,000 salary, a $5,000 bonus leaves you $3,216.00. Income tax takes $1,405.00, CPP $297.50 and EI $81.50, so you lose 35.7% of it.
Why does it feel like a bonus is taxed harder?
Because it is landing on your highest dollars. Your first $58,523 of taxable income faces the federal 14% rate. Anything above it moves to 20.5%, and the Ontario rate steps up at $53,891 too. A bonus sits on the top of the pile, so it meets the highest rates you pay.
And the cheque may show even more tax than you’ll owe at the end. Your employer’s payroll system can hold back extra on a one-off amount. We couldn’t find an official rule to quote for that, so treat the stub as a preview. Your return settles it, and if too much was withheld you get the difference back.
How much of a $5,000 bonus do you keep in Ontario?
That turns on what you already earn. Here’s a $5,000 bonus at five salaries, from the same engine as our bonus calculator.
| Salary | Extra tax | CPP and EI | You keep | Share lost |
|---|---|---|---|---|
| $45,000 | $1,030.30 | $379.00 | $3,590.70 | 28.2% |
| $60,000 | $1,405.00 | $379.00 | $3,216.00 | 35.7% |
| $80,000 | $1,423.20 | $200.00 | $3,376.80 | 32.5% |
| $100,000 | $1,574.00 | $0.00 | $3,426.00 | 31.5% |
| $150,000 | $2,230.90 | $0.00 | $2,769.10 | 44.6% |
The surprise is $60,000. You lose a bigger share there than at $100,000, because CPP and EI still apply to the bonus at $60,000 and have stopped by $100,000. So a mid-income bonus can hurt more than a bigger one.
Does a bigger bonus get taxed more?
Barely. On a $60,000 salary, $10,000 leaves $6,446.51 and $20,000 leaves $12,962.87. That is 64.5% and 64.8% kept, so the share barely moves. Your salary decides the rate far more than the size of the bonus does.
Can you keep more of it?
An RRSP is the obvious route. In the engine, a $5,000 bonus on a $60,000 salary with the whole $5,000 put into an RRSP adds no income tax at all. Tax is $77.50 lower than on the salary alone. We couldn’t confirm how CPP and EI treat a bonus paid straight into a plan, which depends on the employer, so ask at work. The RRSP calculator shows how the money grows.
The other lever is timing, if you have a say in it. A bonus paid in a year when you earn less lands on lower rates. Whether that’s possible is between you and your employer.
What happens near $200,000 in Ontario?
If your income is high, the Ontario Health Premium comes into it. It rises in steps up to a maximum of $900, and it grows by about 25 cents per dollar in narrow bands near $72,000 and $200,000. Inside those bands, the extra tax on a bonus can look far higher than the headline rates. Our marginal rate tool shows about 73% near $200,000. That’s a narrow band, not a flat rate.
Where to check your own numbers
Put your salary and bonus into the bonus tax calculator. Use the take-home pay calculator for the year without the bonus, and the payroll deductions calculator for a normal cheque. Our page on paycheck deductions shows what the regular stub carries.
Other provinces differ. The same $5,000 leaves $3,336.00 in Alberta and $3,015.84 in Nova Scotia on an $80,000 salary.
Where the numbers come from
CPP and EI rates for 2026 are from the Canada Revenue Agency’s payroll pages, the federal brackets from the CRA’s rates page, and the Ontario health premium range from the Ontario government. Ontario brackets are from our data file checked against CRA payroll tables. Results are estimates. The Ontario health premium steps and the 25-cent explanation come from our own reading of the rules, not from a published example.
Frequently asked questions
How much tax is taken on a bonus in Ontario?
There is no special rate. On a $60,000 salary, a $5,000 bonus adds $1,405.00 of income tax, $297.50 of CPP and $81.50 of EI.
Why was my bonus taxed so heavily on the cheque?
Your employer may withhold more on the pay date than you owe. The final tax is set when you file, and any excess comes back.
Do I keep more of a bonus at a lower salary?
Usually, but not always. At $45,000 you keep $3,590.70 of $5,000. At $60,000 you keep less, $3,216.00, because CPP and EI still apply.
Can an RRSP reduce tax on a bonus?
Yes. In our engine a $5,000 bonus put wholly into an RRSP adds no income tax for a $60,000 earner.
Is the tax on a bonus the same in every province?
No. The same $5,000 on an $80,000 salary leaves $3,376.80 in Ontario, $3,336.00 in Alberta and $3,015.84 in Nova Scotia.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.